The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Imation missed estimates on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share contracted.
Gross margins shrank, operating margins contracted, and net margins expanded.
Imation logged revenue of $342.3 million. The one analyst polled by S&P Capital IQ looked for revenue of $355.0 million. Sales were 14% lower than the prior-year quarter's $398.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at -$0.34. The one earnings estimate compiled by S&P Capital IQ anticipated -$0.34 per share. GAAP EPS were -$0.34 for Q4 against -$3.63 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 15.0%, 130 basis points worse than the prior-year quarter. Operating margin was -2.2%, 530 basis points worse than the prior-year quarter. Net margin was -3.8%, 3,080 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $295.0 million. On the bottom line, the average EPS estimate is -$0.14.
Next year's average estimate for revenue is $1.25 billion. The average EPS estimate is -$0.18.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 105 members out of 118 rating the stock outperform, and 13 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Imation a green thumbs-up, and four give it a red thumbs-down.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.